AgdaPkt 2012-01-09 - Laserfiche WebLink

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8.A. - Page 58 significant decrease in the market value of tlle Taxable Parcels or in such property becoming unusable or unmarketable. Hazardous Substances The presence of hazardous substances on a parcel may result in a reduction in the value of a Tlxable Parcel. In general, the owners and operators of 1 parcel may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as "CERCLA° or the "Superfund Act," is the most well- known and widely applicable of these laws, but Califomia 11ws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner or operator is obligated to remedy a 1lazardous substance condition of property whether or not the owner or operator has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the Taxlble Parcels be affected by a hazardous substance, is to reduce the marl<etability and value of the applicable parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller. The City has not independently verified, but is not aware of, the presence of any hazardous substances within the District. Disclosure to Future Purchasers The willingness or ability of an owner of a parcel to pay the Special Tax, even if the value of the property is sufficient to justify payment, may be affected by whether or not the owner was given due notice of the Special Tax authorization at the time the owner purchased the parcel, was informed of the amount of the Special Tax on the parcel should the Special Tax be levied at the maximum tax rate and, at the time of such a levy, has the ability to pay it as well as pay other expenses and obligations. The City has caused a notice of the Special Tax to be recorded in the Office of the County Recorder. Although title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider such Special Tax obligation when purchasing a property witl�in the District or lending money thereon, as applicable. California Civil Code Section 1102.6b requires that, in the case of transfers, the seller must at least make a good faitll effort to notify the prospective purchaser of the special tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the lbove requirements, or failure by 1 purchaser to consider or understlnd the nature and existence of the Special Tax, could adversely affect the willingness and ability of the purchaser to pay the Special Tax when due. FDIC/Federal Government Interests in Properties General. The ability of the City to foreclose the lien of delinquent unpaid Special Tax installments may be limited with regard to properties in which the Federal Deposit Insurance Corporation (the "FDIC'), the Drug Enforcement Agency, the Intemal Revenue Service, or other federal agency has or obtains an interest. Federal courts have held that, based on the supremacy clause of the United States Constitution, in the lbsence of Congressional intent to the contrary, a state or local lgency cannot foreclose to collect delinquent taxes or assessments if foreclosure would impair the federal government interest. -34-